July 14, 2021 | Fork Freight
It is probably time for you to launch your own business and become an owner-operator. If you are considering the business of a truck owner-operator, there are various factors that need to be weighed in before taking the final step.
Follow our article below to get an insight on some of the basic requirements to become a truck owner-operator.
It is important to first ensure that you meet the requirements of becoming a truck owner-operator.
You must have a USDOT number in order to operate a commercial motorized vehicle (CMV) in most states.
It is especially mandatory if you plan on hauling interstate freight, shuttling passengers, or transporting hazardous materials in an amount that needs a safety permit.
If you use a heavy vehicle for transportation, you’ll be liable to pay heavy vehicle use tax.
If a truck owner-operator is using a heavy vehicle, then they require to complete the IRS form 2290. The fee can be exempted if you have driven less than 5,000 miles in a year but you may still need to complete the IRS form. Always seek professional accounting advice.
You will require a license from the State Driver Licensing Agency (SDLA) if you use your CMV for the following:
The idea of starting your own business sounds like a dream come true but the fantasy sometimes overshadows the amount of work and responsibility involved. A truck owner operator increases your workload as well as your time away from family.
Getting a commercial driver’s license is important for driving heavy vehicles with hazardous materials.
Some of the steps are:
There are a series of costs involved in becoming an owner-operator. You will require a bank account for maintaining your finances, to pay taxes, cover business expenses and pay yourself.
Managing your finances is extremely important in order to have a successful business.
You need to consider every aspect of the type of operation you wish to run in order to buy the necessary equipment for your business. This step also requires optimum utilization of funds and financial management.
Depending on the type of owner-operator you want to be, you need to decide on the type of insurance you will need. The insurance coverage generally applies to primary liabilities only.
However, there are additional coverages as well, like non-trucking liability insurance, physical damage coverage, etc.
You need to decide if you want to operate under your own authority or lease your CMV to another company.
The majority of the owner-operators lease motor carriers to easily find work and cover the initial costs. If you are starting out new then this will be beneficial for you. Check out Forkfreight website, to get reliable and verified carriers.
Operating under your own authority will make more money but it isn’t without its risks.
Becoming a truck owner-operator is no joke and it should not be taken lightly especially if you decide to operate under your own authority.
This is a great business opportunity. Make sure to follow the steps above for a successful business. Follow Forkfreight, to get trustworthy information.